Red Rock Resources plc said it planned dynamic exploration and active local engagement following years of preparations as it reported a higher profit following a loss for the previous period.
Group profit before tax was £5,156 million for the year ended 30 June 2020 compared with £1,724m for the previous year.
The company, with interests in Australia, Colombia, the DRC, Kenya and South Africa, said in a statement today that the higher figure reflected a reduction in impairments and the write-back of the £5,280m impairment from June 2015 against assets in Kenya.
Consolidated cash and cash equivalents for 30 June 2020 decreased to £53m (2019: £64m) while total assets rose to £18,260m (2019: £12,362m).
Red Rock added that administrative expenses of £0.597m were nearly the same level as the previous year (£0.592m), despite increases in compliance and accounting costs, as office and other costs were reduced. This allowed more money for marketing activities.
The natural resources company has also mitigated the effects of the pandemic by amending programmes to allow local teams to work within regulations.
“Nowhere were we brought to a complete halt,” said chairman and chief executive Andrew Bell.
“Currently a ground geophysics field programme is under way in Congo, and in 2021, ground exploration activities will begin once again in Kenya.
“In both Australia and Kenya, community engagement activities have already begun in preparation for exploration activities.”
Mr Bell added that recruitment of additional staff and directors was still under way at the subsidiary level and was beginning at the parent company.
“As we develop, our capabilities and structure have to develop to match. We plan an active 2021, building on the years of preparation we have undertaken with dynamic exploration programmes and active engagement with potential partners.”
Red Rock said it had been in advanced discussions with a Chinese enterprise over a sale and joint venture in its Kenya gold assets. However, in the absence of widely available pandemic vaccinations to allow safer travel, Red Rock is now looking for other parties.